Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2023

ARNINGS (LOSS) PER SHARE

Basic EPS and Diluted EPS attributable to common stockholders is calculated in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to twenty votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.

As the economic rights of Class A and Class B common stock are identical, undistributed earnings are allocated on a proportionate basis and presented on a combined basis. The following table sets forth the computation of Basic EPS and Diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the years ended December 31, 2023, 2022, and 2021 (in thousands, except share and per share amounts).


	Year ended December 31,
	2023		2022		2021
Numerator:
Net income (loss)	$	22,637	$	21,186	$	(9,556)
Denominator:
Weighted-average shares—basic	168,065,721		165,268,185		159,177,713
Effect of dilutive stock options	13,502,538		20,362,453		—
Effect of dilutive restricted stock units	844,705		1,916,835		—
Weighted-average shares—diluted	182,412,965		187,547,474		159,177,713
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.13	$	0.13	$	(0.06)
Effect of dilutive stock options and restricted stock units	(0.01)		(0.02)		—
Diluted earnings (loss) per share	$	0.12	$	0.11	$	(0.06)

The Company excluded the following weighted average common equivalent shares from the computation of Diluted EPS for the years ended December 31, 2023, 2022, and 2021 because including them would have had an anti-dilutive effect:


	Year ended December 31,
	2023	2022	2021
Stock options to purchase common stock	11,219,739	5,845,057	40,164,214
Restricted stock units	2,278,137	1,078,486	4,316,091